With young professionals leaving home for greener pastures, the demand for affordable housing has skyrocketed in cities that offer employment, education, and business opportunities. Co-living is one of the real estate investment strategies in Trivandrum that has emerged as an answer to this requirement.
A few adults live together in flats, sharing the rent and the facilities. This makes it affordable for the floating population.
Though single family homes are also offered as co-living spaces, apartments are better suited for the purpose. Co-living usually involves flexible or short-term leases, with facilities like cleaning services, furnished rooms, turnkey amenities and utilities also being provided.
What are the Benefits of Co-Living?
- They are affordable and allow individuals to live in popular localities at affordable prices
- Leases are flexible, thus appealing to those who want temporary housing
- Co-living spaces foster social interaction and community living.
What is Driving Market Demand for Co-Living?
- Increased remote work, changing lifestyles, and the desire for an experiential lifestyle are fuelling the demand for varied, flexible, and community-oriented housing options.
- With the cost of urban housing shooting up, conventional housing options have become too expensive; co-living is a viable and feasible alternative today
- Young people moving out for higher education and employment have increased the existence of single-person households, creating a need for smaller and more cost-effective housing arrangements that also provide social connections.
Co-Living as an Investment Opportunity
Co-living spaces have grabbed the attention of real-estate investors as they have a huge potential for impressive ROI, thanks to the market demand that is going higher by the day.
There are housing startups who offer co-living spaces; they buy or take apartments or houses on long lease, furnish them, and then offer it as co-living spaces. Sometimes, entire floors are purchased by such service providers.
Here is what you should consider when delving into this investment opportunity:
Location
Ideal locations for co-living would be areas where there are institutes of higher education, IT parks, business parks, and so on. Town centres are also good choices, as they are likely to have offices, banks, etc. offering employment opportunities. Ideally, the housing space should be one with amenities like markets, transportation, and easy access to the main roads.
Acquiring the Property
Check out the properties already available there, and see if they will be suitable for co-living purposes. If you have the funds, you can also build your own. Think about the design, layout and amenities that co-living residents will find appealing: shared kitchens, common spaces, flexible sleeping configurations, and so on.
Operational Considerations
You need to ensure that the co-living spaces are properly managed: cleaning, maintenance, repairs, etc; have to be carried out in time if you want to ensure continuous high occupancy. Also keep in mind the importance of property insurance in Trivandrum, and insure your property appropriately.
Satisfied tenants will bring you more tenants and better rental incomes. You can consider hiring professional property managers to ensure this.
Combine with Other Real Estate
You can combine co-living spaces with coworking spaces, mixed use developments, student housing, etc. to diversify your real estate strategy and more avenues to expand your real estate portfolio and increase returns.
Conclusion
There are innumerable future opportunities for development in Trivandrum, with the big push being given to the IT industry. The Technopark at Kazhakkoottam is one example. This is sure to boost demand for affordable and flexible housing in the city.
The increasing demand for co-living spaces presents a lucrative opportunity for real-estate investors. Do your due diligence and research the market thoroughly, and you can taste success in this field too. Evaluate the pros and cons of any location, flat, or house, before you decide.
FAQs
What are the main advantages of choosing co-living arrangements?
Co-living arrangements offer a cost-effective solution for living in prime locations without bearing the full expense alone. These setups typically come with flexible lease terms, making them ideal for those seeking temporary accommodations. Additionally, co-living spaces promote a sense of community and social interaction among residents.
Why is there a growing demand for co-living spaces?
The demand for co-living spaces is on the rise due to several factors, including the increase in remote work, a shift towards more dynamic and experience-driven lifestyles, and the high cost of urban housing. Moreover, the growing number of young adults moving to cities for education and employment has amplified the need for affordable housing options that also offer social connectivity.
Can investing in co-living spaces be profitable?
Yes, investing in co-living spaces can be highly profitable. The market for these living arrangements is expanding, driven by their popularity among young professionals and students. Real estate investors can capitalize on this trend by purchasing or leasing properties to create co-living spaces, potentially yielding impressive returns on investment due to high demand.
What should be considered when investing in co-living real estate?
When diving into co-living real estate investments, it’s crucial to prioritize location, choosing areas near educational institutions, business parks, and city centers that offer employment opportunities. The design and amenities of the property should cater to the preferences of co-living residents, with features like shared kitchens and common areas. Effective management and maintenance are also essential to ensure high occupancy and tenant satisfaction.
How does co-living benefit urban centers like Trivandrum?
Co-living contributes significantly to urban centers like Trivandrum by providing affordable and flexible housing solutions, especially important as the city experiences growth in sectors like the IT industry. This form of housing supports the local economy by meeting the demand for cost-effective living spaces, thereby attracting a workforce that fuels further development and innovation in the city.
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